America’s Gen Z is really here for Temu.
The Chinese online marketplace was the most downloaded app by Gen Zers in the first 10 months of the year. It was downloaded nearly 42 million times by this group.
That’s according to the app analytics firm Appfigures, which pulled data from iOS and Android users between the ages of 18 and 24. Some Gen Zers are under 18, but Appfigures excluded them from their findings, citing privacy concerns for juvenile users.
The data represented in Appfigures’ findings shows the number of downloads made by this demographic between January 1 and October 31 and represents US data only.
The report found that TikTok came in second place for total downloads in this time period, with 33 million downloads. Meta’s Threads app was downloaded 32 million times.
Temu, which is owned by the Chinese company PDD Holdings, sells everything from home goods to motorcycle accessories, all at low costs. The app is characterized by massive discounts, with vouchers popping up while browsing.
Sory Park, a project manager at Daxue Consulting, a China-focused market research firm, said Temu has effectively gamified countdowns and rewards.
“It has also added gamified elements including countdowns and rewards to its shopping experience, which increases user engagement and drives users to ‘buy now or never,’” Park told Business Insider.
Affordable, accessible, personalized
Temu is growing rapidly, and its popularity extends well beyond Gen Z.
PDD Holdings reported revenue of $13.4 billion for the three months ending June 30. That’s an increase of 86% from the same period the year before. In February, it spent millions of dollars on Super Bowl advertisements to win over the US market.
However, Amazon — which was downloaded 15 million times this year by Gen Zers in the US, per Appfigures — still has a hold on the online shopping market.
Amazon made $61.4 billion from online sales in the three months ending September 30, a 7% increase from the same period last year.
On November 13, Amazon launched its Temu-rival discount store, Amazon Haul, in which all products are priced at $20 or less.
Jim Whaley, the CEO of the New York-based market research firm OvationMR, said Temu is popular with Gen Z because it provides a shopping experience that’s affordable, accessible, and personalized.
“Gen Z values a highly curated shopping experience that delivers both variety and convenience at accessible price points,” Whaley said.
Gloria Gan, a lifestyle analyst at the UK-based market research firm Mintel, said Temu is making inroads with Gen Z because of the generation’s “tech-savviness and frequent online shopping habits.”
Gan said that while Amazon has a dominant market position, Temu is also a force to be reckoned with, thanks to its efficient online service and value-for-money offers.
In response to BI’s query, a Temu spokesperson told BI the company has “strived to make a positive impact on people’s daily lives by offering a broad selection of quality products at affordable prices.”
Amazon did not respond to a request for comment.
The post The app data has spoken, and Gen Z’s love for Temu is real appeared first on Business Insider.
